This was a refi of 2 existing gas stations with convenience stores in the Phoenix metro market.
Underwritten as a portfolio loan, but structured as 2 separate loans.
The loan was conventional and refinanced 2 SBA 7(a) loans. The refinancing released about $2.3mm of SBA capacity to be re-used for additional acquisitions.
Combined loan amount was approximately $3.2mm, and included about $1mm cash out to the borrower.
LTV was about 70% with an interest rate in the low 5’s.
This was a strategic refinancing that allowed the borrower to reduce his debt service, liquefy an additional $1mm for cash down payments on additional acquisitions to expand his business, and position high-leverage financing for the acquisitions in the form of new SBA loans.
We had a qualified borrower with all the qualifications lenders look for in a borrower.
The challenge: finding a lender for a conventional owner-occupied property that would refinance a gas station (not a popular asset class) and cash out the borrower up to 70% LTV … in this case $1,000,000.
If you’re faced with your challenge, why not call and let us take a look.
For specific representation, give us a call at Counsel Mortgage.
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Counsel Mortgage Group®, LLC
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Today’s post is written by Michael Green, Commercial Loan Originator for Counsel Mortgage Group, LLC.
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